FLORICAN PRIME LAND LLP Vs. RECOVERY OFFICER

JUDGEMENT

(1.) The successful bidder in an e-auction conducted on 27/12/2024 by the Recovery Officer, Debts Recovery Tribunal-I, Ernakulam in DRC No.78/2020 is the petitioner in W.P.(C) No.1667/2025. The writ petition has been filed seeking to quash order dtd. 9/1/2025 passed by the Recovery Officer rejecting the petitioner's application for extension of time to remit the balance 75% of the bid amount.

(2.) The e-auction was conducted on 27/12/2024. The petitioner successfully bid in auction for an amount of Rs.5,54,00,000.00. The petitioner submits that they complied with the requirements under Rule 57(1) o the 2nd Schedule to the Income Tax Act, 1961 and remitted 25% of the bid amount totalling to Rs.1,38,50,000.00 including AMD. The balance Rs.4,15,50,000.00 was to be remitted on or before 10/1/2025. The petitioner submits that the petitioner duly remitted an amount of Rs.89,04,010.00 towards the balance 25% amount, on 27/12/2024.

(3.) The petitioner faced unexpected delay in arranging the balance 75% bid amount. The petitioner therefore filed Ext.P6 IA No.2/2025 on 3/1/2025 seeking to grant an extension of 20 days to remit the balance amount. The 1st respondent, however, rejected the petitioner's request for extension, as per Ext.P7 order.